funding side. When such runs occur, shadow banks liquidate their assets in a secondary market. Entry into shadow banking is … profitable when traditional banks provide sufficient secondary market demand to prevent these liquidations from causing a fire … collapse then triggers a fire-sale that renders traditional banks vulnerable to "liquidity runs". The prospect of liquidity …

To address banks' risk taking during the recent financial crisis, we develop a model of credit-portfolio optimization … and study the impact of risk-based capital regulation (Basel Accords) on banks' asset allocations. The model shows that … requirements – for banks for which these requirements are (will become) binding – will be to skew the risky portfolio towards high …

Recession and sovereign debt crisis, many central banks have pursued ultra-easy and far reaching unconventional monetary …

Recession and sovereign debt crisis, many central banks have pursued ultra-easy and far reaching unconventional monetary …